Even though the stock is up to $7+ per share, it is still way undervalued. It's trading at about 70% of Book Value while all the other homebuilders are trading close to 150% of Book Value. BHS' balance sheet is now in great shape following the $250 million Rights Offering which I think hasn't been recognized at all by investors.....or all the shorters who are short 2+ million shares of BHS. And if anything, BHS should be trading at a PREMIUM to the other homebuilders. Their markets were the 1st to enter the downturn approximately 4 years ago and their markets are now stable to turning up....and SUPPLY in their markets is actually getting quite low (the 3 months +/- supply). Also, let's not forget that even though land values have fallen significantly over the past few years, all the land that BHS owns was acquired raw many years ago....they added value by bringing it through the entitlement process and their cost basis is still way below current land values which, if anything, are trending slightly upwards in their markets.
This stock should easily get back to the $15/share level (or approx 150% book value) once this is all recognized.